Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Should net wealth and property taxation be introduced in the United Kingdom?

Kravec, Maros LU (2013) HARN60 20131
Department of Business Law
Abstract
The paper analyses whether net wealth and property taxation would be a more desirable alternative to other forms of wealth transfer taxation applied in the current tax system of the United Kingdom. It firstly discusses key features of desirable tax system and then methodically applies each form of the taxation towards this framework. Special attention is given to horizontal and vertical equality of the system; efficiency; administration and compliance costs; and finally potential for tax avoidance. This research concludes that net wealth tax is not as ideal form of taxation as it is perceived by its supporters. While there are credible rationales for its introduction, its negative aspects are undeniable and in the opinion of the author... (More)
The paper analyses whether net wealth and property taxation would be a more desirable alternative to other forms of wealth transfer taxation applied in the current tax system of the United Kingdom. It firstly discusses key features of desirable tax system and then methodically applies each form of the taxation towards this framework. Special attention is given to horizontal and vertical equality of the system; efficiency; administration and compliance costs; and finally potential for tax avoidance. This research concludes that net wealth tax is not as ideal form of taxation as it is perceived by its supporters. While there are credible rationales for its introduction, its negative aspects are undeniable and in the opinion of the author prevail over positives. Rather surprisingly, the author has also established that current forms of wealth transfer taxes shall be abolished even though it might cause a marginal windfall loss of tax revenue. The outcome of property tax analysis is slightly more ambiguous. Still, its introduction which would be a substitution or mere addition to highly criticised Council tax is not suggested. The author on the other hand proposed to merge positive factors of these two forms of taxation and also to tax land separately. (Less)
Please use this url to cite or link to this publication:
author
Kravec, Maros LU
supervisor
organization
course
HARN60 20131
year
type
H1 - Master's Degree (One Year)
subject
keywords
Tax, Tax design, Optimal taxation, Wealth Tax, Property Tax, Public Finance, tax system, wealth distribution, equality, efficiency, tax avoidance, wealth transfer
language
English
id
3800434
date added to LUP
2014-01-27 10:22:10
date last changed
2014-01-27 10:22:10
@misc{3800434,
  abstract     = {The paper analyses whether net wealth and property taxation would be a more desirable alternative to other forms of wealth transfer taxation applied in the current tax system of the United Kingdom. It firstly discusses key features of desirable tax system and then methodically applies each form of the taxation towards this framework. Special attention is given to horizontal and vertical equality of the system; efficiency; administration and compliance costs; and finally potential for tax avoidance. This research concludes that net wealth tax is not as ideal form of taxation as it is perceived by its supporters. While there are credible rationales for its introduction, its negative aspects are undeniable and in the opinion of the author prevail over positives. Rather surprisingly, the author has also established that current forms of wealth transfer taxes shall be abolished even though it might cause a marginal windfall loss of tax revenue. The outcome of property tax analysis is slightly more ambiguous. Still, its introduction which would be a substitution or mere addition to highly criticised Council tax is not suggested. The author on the other hand proposed to merge positive factors of these two forms of taxation and also to tax land separately.},
  author       = {Kravec, Maros},
  keyword      = {Tax,Tax design,Optimal taxation,Wealth Tax,Property Tax,Public Finance,tax system,wealth distribution,equality,efficiency,tax avoidance,wealth transfer},
  language     = {eng},
  note         = {Student Paper},
  title        = {Should net wealth and property taxation be introduced in the United Kingdom?},
  year         = {2013},
}